The nuclear deal struck by Iran and six world powers will put more rubber on the road in the Islamic republic.
The country's major carmakers stand ready to start receiving parts again from French firms Peugeot Citroen and Renault when the sanctions ease.
That could see Iran's stalled car production again take off, proving a boon to local carmakers and potentially draw in more foreign investment from other manufacturers hoping to break into the previously restricted market. The nuclear deal struck in Geneva puts the brakes on the most sensitive parts of Iran's uranium enrichment programme in return for relief from economic sanctions.
The sanctions expected to lift include those affecting Iran's motor industry, its petrochemical exports, the sale of gold and other precious metals and the supply of spare parts for Iranian aircraft.
Iran's motor industry has been particularly hard hit by the sanctions.
Car production in Iran this year fell by 72 per cent compared with 2011, when it produced 1.6 million cars.
The sanctions relief, to start next month, allows for the French companies to resume sending parts to Iran's biggest carmakers, Iran Khodro and SAIPA. About 100,000 Iranian car workers have been laid off because of sanctions.
-AP